“Reasonable” isn’t enough: What SMEs must now do to prevent sexual harassment in the workplace.

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A quiet but significant shift is taking shape in UK employment law. From October 2026, a new statutory duty will come into force, requiring employers not just to take reasonable steps to prevent sexual harassment – but to take all reasonable steps. This higher standard, introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2023, will apply to employers of every size.

That single word – all – changes everything. It turns passive policies into active obligations. And for small and medium-sized businesses, it means thinking seriously about how prevention is built into everyday operations. This isn’t just about having a policy in a drawer or a sentence in a staff handbook. It’s about creating workplaces where harassment is less likely to happen in the first place and being able to show the steps taken if it does.

The expectation isn’t perfection. But it is action. And more than ever, the law will want to see it.

Raising the Bar

Up to now, employers have been expected to take ‘reasonable steps’ to stop sexual harassment at work. In reality, that’s left a lot of wriggle room – enough for some businesses to do the bare minimum. But come October 2026, that won’t fly. The bar is going up, and employers will need to show they’ve done everything that could reasonably be expected of them to prevent harassment. Not some steps. All steps that make sense in their workplace.

It’s a shift from passive to proactive. And it’s happening whether or not the detailed regulations are ready. Those regulations, which will set out what counts as “reasonable”, are expected in 2027. But the legal duty kicks in a year earlier. In the meantime, businesses are expected to follow best practice guidance, particularly from Acas and the EHRC.

There’s no one-size-fits-all list. What’s considered “reasonable” will vary depending on things like sector, workplace layout, staff numbers, and the risks involved. But one thing is clear – the more thought, structure, and follow-through you can show, the stronger your position will be if you ever have to defend it.

Making prevention meaningful

Plenty of workplaces have harassment policies. But this new duty asks employers to go further – not just to have a policy, but to make it part of how the organisation works day to day.

That means reviewing how risks arise in your business. Is there regular customer interaction? Lone working? After-hours shifts? Informal reporting cultures? These factors all shape what reasonable steps might look like. It also means revisiting training, especially for line managers. One-off online modules aren’t likely to cut it anymore. The law will expect a visible effort to make people aware of the policy, understand it, and apply it.

In a smaller team, you might not have a dedicated HR function. But that can be an advantage. With fewer layers, you have more direct influence over how culture is set and maintained. A short, clear policy explained in team meetings, backed by real examples, and reinforced when issues arise, can often go further than a lengthy document few people read.

Harassment by outsiders

October 2026 will see the re-introduction of employer liability for third-party harassment in relation to all relevant protected characteristics.

An employer will have permitted a third party to harass one of its employees if both of the following apply:

  • The third party harasses the employee in the course of their employment with the employer.
  • The employer failed to take all reasonable steps to prevent the third party from harassing the employee in the course of their employment.

This won’t depend on whether it’s happened before, or whether the employer knew it might happen. If it does happen, the question will be: could the employer reasonably have done more to stop it?

That’s a tall order in sectors like retail, hospitality, care or transport, where employees often deal with the public. But the law doesn’t expect you to eliminate all risk. It just expects you to take it seriously and take steps to manage it.

That might mean briefing staff on how to deal with inappropriate behaviour, putting up signage that sets expectations, or recording and reviewing previous incidents. It might also mean knowing when to step in and making sure your team knows you’ll back them if they speak up. Employers won’t be expected to control how every customer behaves, but they will be expected to show they tried.

Whistleblowing protections

From April 2026, complaints of sexual harassment will also count as whistleblowing under UK law. This is a game changer, especially for small employers.

It means that any employee who reports sexual harassment will have stronger legal protection. They won’t need to have worked for two years. They can’t be dismissed or treated badly for speaking up. And they won’t be bound by confidentiality clauses, even if those are written into their contracts or settlement agreements. If they want to take the issue to an external body like the EHRC, they’ll be allowed to do so.

What this means in practice is that employers need to treat harassment complaints with the same care and seriousness they’d give to any protected disclosure. It also means making sure staff know who they can talk to, how concerns will be handled, and what support they’ll get.

Internal processes, especially where HR is limited, need to be watertight. Even in a small business, one poorly handled complaint can now turn into a whistleblowing claim with no compensation cap.

Why documentation matters

It’s not enough to say you took harassment seriously. You’ll need to prove it. In most harassment claims, once an employee shows that harassment happened, the employer has to show that it took all reasonable steps to prevent it. And that proof needs to be more than just words.

That could mean having a dated copy of your harassment policy, notes from team briefings or training sessions, or even informal records showing how concerns were dealt with. You don’t need a formal HR system to do this well. A clear audit trail, even if it’s simple, can make all the difference if a claim ever reaches tribunal.

On the flip side, a lack of paperwork (no policy, no records, no meeting notes) makes it hard to argue that steps were taken, no matter how good your intentions might have been. This is one area where the admin matters.

If an employer can’t show that all reasonable steps were taken, they may lose the opportunity to rely on the statutory defence available under the Equality Act. In that case, liability for the harassment, whether by an employee or a third party, will rest squarely with the employer.

That could lead to uncapped compensation awards for injury to feelings, financial losses, or even aggravated damages in more serious cases. For smaller businesses, where one claim can carry significant reputational and financial weight, the consequences of poor preparation can be hard to absorb. In other words, without documentation, you don’t just weaken your defence – you may lose it entirely.

Action plans

A separate part of the new legislation will require large employers (with over 250 staff) to publish Equality Action Plans. These will include details about things like gender equality and harassment prevention. While SMEs won’t be legally required to do this, it’s worth paying attention.

Voluntarily adopting aspects of an action plan, such as summarising your preventative measures or outlining your approach to staff wellbeing, can send a strong signal to employees, clients, and regulators alike. It shows awareness and accountability. And in sectors where tenders or contracts demand proof of good governance, it may give you a competitive edge.

Even a short, one-page plan reviewed annually could become a valuable tool – not just for compliance, but for clarity and culture too.

Where SMEs go from here

The new duty won’t land all at once. But it is coming, and the expectation is that employers will act early, not wait until the last minute.

For SMEs, that means reviewing what you’ve got in place. Do you have a policy that reflects how your workplace actually runs? Have staff been trained, recently and meaningfully? Are managers confident in how to deal with complaints? And most importantly, can you show it?

Prevention doesn’t have to be complex. But it does need to be real. The law is changing to reflect the simple truth that preventing harassment isn’t just about rules, it’s about people. At Buckles, we’re here to help you put that into practice.

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